Brace Yourself for More Business Collapses: A Looming Economic Crisis in Germany
Deep-Seated Customs Conflict Leading to Economic Desolation: Rise in Business Collapses Anticipated - Escalating trade disagreement and financial hardships leading to a predicted rise in business insolvencies
Kick back and brace yourselves, folks. The economic crisis, coupled with a trade dispute, is setting the stage for a substantial rise in company bankruptcies in Germany. According to credit insurer Allianz Trade, we can expect more bankruptcies — many of them big ones — in the years 2025 and 2026. The latest report predicts a whopping 11% increase in 2025, with around 24,400 cases, and another 3% increase in 2026, reaching 25,050.
Previously, they had predicted a 10% increase. In 2024, the number of bankruptcies had already skyrocketed by nearly a fifth (plus 22%). And guess what? Germany and France are leading the charge in Western Europe, with many other countries still reeling from the hit.
"No mercy," says Milo Bogaerts, head of Allianz Trade in Germany, Austria, and Switzerland. He warns that these massive business collapses can have a domino effect on supply chains. Yikes!
But it's not just the sheer numbers that are worrying people. No, the persistent high numbers of large bankruptcies, with heaps of jobs on the line, have everyone on edge. Given the grim economic outlook in Germany, global trade, and the ongoing trade dispute, Allianz Trade expects a tidal wave of large bankruptcies and considerable damage in 2025.
Speaking of damage, the previous year set a record for massive bankruptcies in Germany, with a total of 87 cases, generating a staggering €17.4 billion in turnover. And if that's not enough to give you a headache, there's no reprieve in 2025 either. Troublemakers Ranging from construction, retail, auto suppliers, and even chemical firms have already filed for bankruptcy in Q1 2025.
Trade Dispute. Economic Crisis. Germany. Bankruptcy. This isn't the plot of some dystopian novel; it's our reality. So buckle up and let's ride this rollercoaster together!
- Trade Dispute
- Economic Crisis
- Large Business Collapses
- Job Losses
- Germany
- Economic Downturn
- Retail Industry
- Construction Industry
- Auto Suppliers
- Chemical Companies
- U.S. Tariffs
- Employment Threat
- Ongoing Uncertainty
In view of the escalating economic crisis and the trade dispute, the community policy may need to prioritize job creation initiatives, such as vocational training programs, to mitigate the impending effects of large business collapses in industries like construction, retail, auto suppliers, and chemical companies in Germany, thereby reducing potential employment threats. With Germany experiencing an ongoing economic downturn, it is essential that such policies are implemented promptly to safeguard the livelihood of many and cushion the impact of the looming tidal wave of large bankruptcies in 2025.
